Atlantic Research Corp. v. United States

459 F.3d 827, 36 Envtl. L. Rep. (Envtl. Law Inst.) 20164, 62 ERC (BNA) 1993, 2006 U.S. App. LEXIS 20557, 2006 WL 2321185
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 11, 2006
Docket05-3152
StatusPublished
Cited by28 cases

This text of 459 F.3d 827 (Atlantic Research Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Research Corp. v. United States, 459 F.3d 827, 36 Envtl. L. Rep. (Envtl. Law Inst.) 20164, 62 ERC (BNA) 1993, 2006 U.S. App. LEXIS 20557, 2006 WL 2321185 (8th Cir. 2006).

Opinion

ROSENBAUM, District Judge.

Atlantic Research Corporation (“Atlantic”) seeks partial reimbursement from the United States for costs incurred in an environmental cleanup. Atlantic’s claim is based on the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §§ 9601-9675 (2005), as amended by the Superfund Amendments and Reauthorization Act of 1986 (“SARA”), Pub.L. No. 99-499, 100 Stat. 1613, 1615. The issue for consideration is whether CERCLA forbids a party such as Atlantic, which has voluntarily cleaned up a site for which it was only partly responsible, to recover part of its cleanup costs from another liable party. 2 For the reasons that follow, we hold that CERCLA § 107 permits such a cause of action.

I. Background

Atlantic retrofitted rocket motors for the United States from 1981 through 1986. It performed this service at its Camden, Arkansas, facility. The work included using high-pressure water spray to remove rocket propellant. Once removed, the propellant was burned. Residue from burnt rocket fuel contaminated the Arkansas site’s soil and groundwater.

Atlantic voluntarily investigated and cleaned up the contamination, incurring costs in the process. It sought to recover a portion of these costs from the United States by invoking CERCLA §§ 107(a) and 113(f). 3 Atlantic and the government began to negotiate in an effort to resolve these financial matters.

The negotiations ended with the United States Supreme Court decision in Cooper Industries, Inc. v. Aviall Services, Inc., 543 U.S. 157, 125 S.Ct. 577, 160 L.Ed.2d 548 (2004) (“Aviall ”). In Aviall, the court found a party could only attempt to obtain § 113(f) contribution “during or following” a §§ 106 or 107(a) CERCLA civil action. Id. at 161, 125 S.Ct. at 580. As no action had been commenced against Atlantic under either §§ 106 or 107(a), the Aviall decision barred its § 113(f) contribution claim.

With its § 113(f) claim AwaM-foreclosed, Atlantic amended its complaint. The amended complaint relied solely on § 107(a) and federal common law. In lieu *830 of answer, the government moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), arguing this Court’s pre- Aviall decision in Dico. Inc. v. Amoco Oil Co., 340 F.3d 525 (8th Cir.2003) (“Dico ”) foreclosed Atlantic’s § 107 claim. The district court agreed. Atlantic appeals.

As will be discussed in more detail below, Dico held that a liable party could not bring an action under § 107. Dico, 340 F.3d at 531. We recognize the generally preclusive effect of a previous panel’s ruling. United States v. Blahowski, 324 F.3d 592, 596-97 (8th Cir.2003). But this rule is not inflexible. Where the prior decision can be distinguished, or its rationale has been undermined, a subsequent decision can depart from the prior path. 4 We are convinced Dico is such a case; it is clearly distinguishable from the case at bar, and its analytic is undermined by Aviall.

II. Analysis

As this case turns on the interpretation of CERCLA, a federal statute, our review is de novo. Iowa 80 Group, Inc. v. Internal Revenue Service, 406 F.3d 950, 952 (8th Cir.2005). We undertake this review, recognizing our obligation to effectuate the intent of Congress when interpreting federal statutes. Id. To resolve the question before us, we must briefly review the intertwined history of CERCLA §§ 107 and 113, and then analyze this history in light of Aviall.

A. CERCLA Cost Recovery and Contribution — Pr e-Aviall

CERCLA is Congress’s monumental attempt to “encourage the timely cleanup of hazardous waste sites,” and “place the cost of that response on those responsible for creating or maintaining the hazardous condition.” Control Data Corp. v. S.C.S.C. Corp., 53 F.3d 930, 935-36 (8th Cir.1995) (internal quotations and citations omitted). To achieve these ends, CERCLA effectively transformed centuries of real property and tort liability law by making those who contaminate a site strictly liable for the costs of subsequent cleanup by others. See Alexandra B. Klass, From Reservoirs to Remediation: The Impact of CERCLA on Common Law Stnct Liability Environmental Claims, 39 Wake Forest L.Rev. 903 (2004); Ronald G. Aronovsky, Federalism & CERCLA: Rethinking the Role of Federal Law in Private Cleanup Cost Disputes, 33 Ecology L.Q. 1, 9 (2006).

When the federal or a state government conducts the cleanup, CERCLA permits the sovereign to recover its costs from whomever is liable for the contamination. § 107(a)(4)(A). CERCLA also provides three methods by which private parties may recover cleanup costs. The first is found at § 107(a)(4)(B), a part of the original statute in 1980. Congress added the others, §§ 113(f)(1) and 113(f)(3)(B), as part of SARA. 5

Sections 107(a) and 113(f)(1) are central to our analysis. The Eighth, and many of its sister Circuits, have previously held *831 that liable parties seeking reimbursement must use § 113(f)(1), and may not use § 107 for that purpose. Today, we consider whether this ruling remains viable in the post-Aviall world.

CERCLA’s § 107(a) provides that “covered persons,” which we will call “liable parties,” 6 are liable for, among other things:

(A) all costs of removal or remedial action incurred by the United States Government or a State or an Indian tribe not inconsistent with the national contingency plan;
(B) any other necessary costs of response incurred by any other person consistent with the national contingency plan[.]

§ 107(a)(4)(A),(B). Courts have found in CERCLA’s reference to “any other necessary costs of response” and “any other person,” authority to allow private suits under § 107(a)(4)(B). See Walls v. Waste Resource Corp., 761 F.2d 311, 318 (6th Cir.1985) (collecting cases).

Section 113 contains a subsection entitled “Contribution,” the first part of which states:

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459 F.3d 827, 36 Envtl. L. Rep. (Envtl. Law Inst.) 20164, 62 ERC (BNA) 1993, 2006 U.S. App. LEXIS 20557, 2006 WL 2321185, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-research-corp-v-united-states-ca8-2006.